The 50% Payout Rule means each payout request cannot exceed 50% of the profits earned during the current payout cycle, even if the payout cap table allows a higher amount.
How It Works
The maximum payout amount is always the lower of:
50% of the profits earned during the current payout cycle
Examples
Example 1
Profit earned during the payout cycle: $1,500
50% of profits: $750
Payout cap limit ($50,000 Plan): $2,000
Maximum payout: $750
Although the payout cap allows up to $2,000, the 50% Payout Rule limits the payout request to $750.
Example 2
Profit earned during the payout cycle: $8,000
50% of profits: $4,000
Payout cap limit ($100,000 Plan): $3,000
Maximum payout: $3,000
In this case, the payout cap limit is the limiting factor.
Key Points
Calculated using the profits earned during the current payout cycle.
Applies to each payout request.
A payout request cannot exceed 50% of profits or the payout cap limit, whichever is lower.
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